Search for:
  • Home/
  • News/
  • SEC seeks summary judgment in Do Kwon and Terraform Labs case

SEC seeks summary judgment in Do Kwon and Terraform Labs case

There Securities and Exchange Commission (SEC) objected to the jury’s findings regarding Terraform Labs’ alleged infringement and sought summary judgment on all claims.

a document October 27 showed SEC reluctance By accepting the jury’s leniency related to Do Kwon And His role in facilitating frauds that led to the collapse of the world ecosystem. The document, filed in the United States District Court for the Southern District of New York, stated:

“No rational jury could conclude that Kwon is not liable for Terraform’s violations pursuant to Section 10(b) of the Exchange Act and applicable Rule 10b-5 under Section 20(a) of the Exchange Act.”

There “hearing” The number of violations provided by the SEC shows that: Kwon was involved in deceiving crypto investorsCreating and promoting the Terra ecosystem and its Terra tokens (MOON) as titles.

SEC seeks summary judgment in Kwon v. Terraform Labs case. Source: CourtListener

The same day, Kwon And Terraform Laboratories They asked the judge to dismiss the SEC’s case. Terra Classic (LUNC), TerraClassicUSD (USTC), Mirror Protocol (MIR) and its mirror entity (mAssets) They are not securities as the Commission claims.

But the SEC alleges that Kwon and Terraform Labs offered and sold securities. MOON And MIR They committed fraud by making transactions with mAssets in unregistered transactions.

Although the lawyer Daniel ShinTerra co-founder blames ecosystem collapse “Irrational operation of the Connection Protocol and external attacks by Do-hyung Kwon”The company recently accused the market maker Kale Securities for his role in the alleged incident “Concerted and deliberate effort” related to Causes depeg of TerraUSD stablecoin (FSO) in 2022.

Screenshot of document Terraform requests Citadel to provide additional documentation. Source: CourtListener

In a statement, Citadel Securities told Cointelegraph: “This senseless action is based on false social media posts and ignores information we have previously provided confirming that we had no role in this matter.”

Leave A Comment

All fields marked with an asterisk (*) are required